By accident, I believe that our industry does us all a disservice. How? By calling us real estate investors.
How many of you call yourselves real estate investors? Lots. How many of you feel a little queasy when you introduce yourself as a real estate investor? (No need to confess – just recognize that feeling).
Do you want to know why you may be feeling queasy? I’ll tell you. It’s because of the incongruent language we are using on ourselves. Let me prove it while helping bust the #1 fear of real estate “investors”.
What do you think of when you hear the word investor?
I bet it’s “cash” or “credit”. Right? Maybe something that you feel that you don’t have. So if your business card declares you a real estate investor and you don’t have any cash, do you feel funny, or out of integrity, incongruent? Maybe a little?
On the other hand, what do you think of when you hear the word entrepreneur? The answers to this question usually range from “opportunist” to “opportunities” to “ideas” to “deals”, etc.
The definition of an entrepreneur is someone who uses the time, talent and treasure of other people to realize their idea or vision. Read that again because this a subtle but important point about your real estate success.
The #1 limiting belief of real estate “investors” is “I can’t do this business because I have little cash and/or bad credit.” And if your subconscious holds this belief, guess how hard you are going to work to find deals. Guess how many deals your are likely to do – ZERO.
Good news – this limiting belief is easily busted.
You are not a real estate investor. You are a real estate entrepreneur.
What’s the difference? Well, entrepreneurs bring the deals to the money. Investors bring the money to the deals.
By DEFINITION, entrepreneurs are not expected to use their own cash. They are expected to raise cash for their deals and projects. That’s what we do. We find the one thing that is much more valuable than the cash – we find deals.
Money is easy. Finding the deals is the part that requires a little work. But most real estate “investors” get hung up in marketing or making an offer because they don’t have the cash sitting in their checking account. They freeze.
You need to declare yourself a “Real Estate Entrepreneur.” That’s what I do.
At this stage of my life, it’s more fun being the entrepreneur and putting deals together. It’s my form of creativity It’s my art. Being the investor and putting up the cash is OK but it’s kind of like being the guy that furnished the paint to Michelangelo. Nobody remembers the paint supply guy.
Adopt 2 new affirmation(s):
I am a real estate entrepreneur.
I am leveraging the time, talent and treasure of others.
Try it and let me know how you feel.
Lance
P.S. Change your business card.
The advantages of multifamily are multi-fold! Here’s a collection of the advantages:
1. Bigger checks when wholesaling
2. Bigger passive income
3. Faster financial freedom
4. Can do it part-time (2 hours/day)
5. Easier to evaluate the value
6. Can do it nationwide
7. Can easily outsource the property management
8. Easier to finance and raise money
9. Less competition
10. Multiple exit strategies
11. Predictable ways to create value
12. Creative financing (nothing down) is the norm
13. Economies of scale
Whether you are a wholesaler, rehabber, or buy and hold entrepreneur, apartments are for you.
Let’s look at the first 2 advantages, bigger checks…
By the fact that we are looking at bigger ticket items, there are more zeroes on your checks.
Think about it. As we add zeroes to the deals, we are creating more leverage for ourselves and more zeroes on our checks.
If you wholesale, would you prefer x% of $100,000 deals or x% of 1,000,000 deals? Well, I’ll take the larger deals.
Bigger returns per deal mean less deals to make the same return as houses. That’s less pressure to do the same volume of business OR drastically increase our total dollars per year.
And when we focus on passive income, that means faster financial freedom.
Lance
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